The Present Value of $1 Million to Be Received in the Future

question 332

Multiple Choice

The present value of $1 million to be received in the future will

• A) increase if the interest rate rises.
• B) increase if the payment is received at a more distant time in the future.
• C) be greater than $1 million.
• D) increase if the interest rate were to fall from 8 percent to 4 percent.

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Definitions:

Communication Technologies

Tools and platforms that enable the electronic exchange of information (text, audio, video, etc.) across distances, such as email, social networks, and video conferencing.

External Computer Networks

Networks that extend or connect with systems outside a given organization, enabling data exchange between different entities.

The CPU

Stands for Central Processing Unit, the primary component of a computer that performs most of the processing inside the computer.

Input Technologies

Technologies that allow users to input data into a computer or other digital devices, including keyboards, mice, and touchscreens.